1. Which of the following is a positive bond covenant?

a. Furnish audited financial statements

b. Cannot merge the company

c. Dividend payouts are limited

d. all of the above

2. TMV Corporation offers common stock that pays an annual dividend of $2.00 per share. The company promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn 12% return on your equity investments?

a. 28.57

b. 13.33

c. 16.67

d. $17.50